MainStreet Bancshares (MNSB) AI Stock Analysis

• Market Cap: $166.52M
• Dividend Yield: 1.85%
• Average Volume (3M): 16.70K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.61
• Revenue Growth: 4.08%
• EPS Growth: -172.13%
• Country: US
• Employees: 182
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.53
• Shares Outstanding: 7,705,900
• 10 Day Avg. Volume: 15,663
• 30 Day Avg. Volume: 16,696
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: -22.50
• 1Y Price Target: $24.50
• Price Target Upside: 13.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $24.50 ▲(13.37% Upside)

MainStreet Bancshares shows strong technical momentum and positive corporate developments, which are offset by valuation challenges and profitability issues. The company has potential for recovery, but investors should be cautious of overbought technical indicators and the impact of recent data security concerns.

Positive Factors

Revenue Growth

The strong Q2 earnings and net interest margin growth indicate robust revenue generation, supporting long-term financial stability and market competitiveness.

Leadership Strength

Promoting from within strengthens leadership continuity and strategic growth, enhancing the company's ability to execute its financial and operational strategies effectively.

Asset Quality

Strong asset quality through disciplined credit practices ensures financial resilience and reduces potential risks from loan defaults, supporting long-term profitability.

Negative Factors

Profitability Challenges

Negative net income and margins indicate operational inefficiencies, which could hinder long-term growth and require strategic cost management to restore profitability.

Leverage Risks

Moderate leverage poses potential risks to financial flexibility, necessitating prudent debt management to maintain balance sheet stability and support future growth.

Data Security Incident

The data breach, though not materially impacting operations, highlights vulnerabilities in data security that could affect customer trust and require ongoing investment in IT security.

MainStreet Bancshares Business Overview & Revenue Model

Company Description

MainStreet Bancshares, Inc. (MNSB) is a financial holding company based in the United States, primarily engaged in providing a wide range of banking and financial services through its wholly-owned subsidiary, MainStreet Bank. The company operates in the banking sector, offering services such as personal and commercial banking, mortgage lending, and wealth management. MNSB focuses on serving individuals, small businesses, and local communities, emphasizing personalized service and community involvement.

How the Company Makes Money

MainStreet Bancshares generates revenue primarily through interest income from loans, which includes personal loans, commercial loans, and mortgages. The company also earns non-interest income from various sources, such as service fees, transaction fees, and wealth management services. Key revenue streams include net interest margin from the difference between interest earned on loans and interest paid on deposits, as well as fees generated from banking services provided to customers. Additionally, partnerships with local businesses and organizations can enhance customer acquisition and retention, contributing positively to the company's earnings.

MainStreet Bancshares Financial Statement Overview

Summary

MainStreet Bancshares faces profitability challenges, with negative net income and EBIT performance. However, steady revenue growth and strong operational cash generation indicate a solid foundation for recovery if cost management improves. The balance sheet shows moderate leverage and potential risks but retains stability.

Income Statement

MainStreet Bancshares has seen a decline in its net income and EBIT performance in the TTM, with negative margins indicating operational challenges. However, revenue growth has been steady over the years, which provides a solid foundation for recovery if cost management improves. The gross profit margin remains positive, albeit lower than the historical average, suggesting some resilience in revenue generation despite profitability issues.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio that is stable but requires careful management. Return on Equity has turned negative in the latest period due to negative net income, which is a concern. The equity ratio remains healthy, indicating good asset coverage by equity. Overall, the balance sheet shows potential risks but retains stability.

Cash Flow

Cash flow from operations has been positive, indicating good cash generation despite net losses, with a positive free cash flow to net income ratio. However, declining free cash flow growth rates and high capital expenditures could pressure liquidity if not managed. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion from core operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.87M	127.76M	88.68M	70.31M	69.52M
Gross Profit	59.06M	78.44M	72.91M	60.82M	49.82M
EBITDA	-9.27M	35.57M	35.97M	30.32M	21.70M
Net Income	-9.98M	26.59M	26.67M	22.17M	15.72M
Balance Sheet
Total Assets	2.23B	2.04B	1.93B	1.65B	1.64B
Cash, Cash Equivalents and Short-Term Investments	48.92M	113.51M	111.56M	161.74M	223.35M
Total Debt	73.04M	87.64M	172.25M	29.29M	14.83M
Total Liabilities	2.02B	1.81B	1.73B	1.46B	1.48B
Stockholders Equity	207.99M	221.52M	198.28M	188.79M	167.66M
Cash Flow
Free Cash Flow	8.95M	25.63M	25.76M	24.82M	15.73M
Operating Cash Flow	14.74M	31.63M	33.54M	29.12M	17.02M
Investing Cash Flow	-122.28M	-130.75M	-228.74M	-60.52M	-313.79M
Financing Cash Flow	200.73M	83.03M	232.59M	-14.20M	339.45M

MainStreet Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSB, the sentiment is Neutral. The current price of 21.61 is below the 20-day moving average (MA) of 22.11, above the 50-day MA of 20.95, and above the 200-day MA of 18.41, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 13.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNSB.

MainStreet Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	79 Outperform	$135.67M	11.74	9.23%	2.73%	9.87%	2.62%
AFBI	76 Outperform	$123.77M	18.25	5.67%	―	6.51%	28.94%
RMBI	75 Outperform	$151.44M	15.40	7.23%	4.06%	9.70%	18.24%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
MNSB	63 Neutral	$166.52M	14.43	-4.04%	1.85%	4.08%	-172.13%
RVSB	60 Neutral	$101.39M	19.72	3.25%	1.60%	10.30%	170.86%
ECBK	―	$145.69M	25.88	3.18%	―	―	―

MainStreet Bancshares Corporate Events

MainStreet Bancshares Approves Indemnification Agreement for CFO

On August 21, 2025, MainStreet Bancshares, Inc. approved an indemnification agreement with Richard A. Vari, the Chief Financial Officer of MainStreet Bank. This agreement ensures that Vari will be indemnified to the fullest extent allowed by law for expenses and other amounts incurred in legal proceedings related to his role as an executive officer. The agreement also includes provisions for the advancement of defense expenses, which must be repaid if it is determined that indemnification is not warranted.

MainStreet Bancshares Announces $0.10 Cash Dividend

On July 23, 2025, MainStreet Bancshares, Inc. announced a cash dividend of $0.10 per share to be paid to common shareholders on August 13, 2025, with a record date of August 6, 2025. Future dividends will be considered based on the company’s financial condition and other factors, highlighting the Board’s ongoing evaluation of its financial strategy.

MainStreet Bancshares Reports Strong Q2 Earnings Growth

On July 22, 2025, MainStreet Bancshares, Inc. reported strong second-quarter earnings with a net income of $4.6 million and a net interest margin of 3.75% for the quarter ended June 30, 2025. This represents an increase of $2.1 million and 45 basis points from the previous quarter, respectively. The company’s strategic balance sheet management and strong asset quality contributed to this performance, with net interest income expanding to $19.3 million and earnings per common share rising to $0.53. The loan portfolio remains robust due to disciplined credit practices, and the company maintains an active share repurchase plan as part of its strategic capital plan.

MainStreet Bancshares Announces Upcoming Earnings Call

On July 8, 2025, MainStreet Bancshares, Inc. announced plans to hold a virtual webcast and quarterly earnings conference call on July 22, 2025, to discuss second quarter results and recent activities. This event is significant for investors as it provides insights into the company’s performance and strategic updates, potentially impacting stakeholder decisions.

MainStreet Bancshares Promotes Alex Vari to CFO

On July 7, 2025, MainStreet Bancshares, Inc. announced the promotion of Alex Vari to Executive Vice President and Chief Financial Officer of MainStreet Bank, highlighting the company’s strong leadership and internal growth. This promotion reflects the bank’s commitment to strategic growth and value creation, as Vari has played a significant role in developing the company’s Sarbanes-Oxley internal control framework and will continue to work closely with Tom Chmelik, the CFO of the holding company, to enhance the bank’s financial operations.

MainStreet Bancshares Reports Data Security Incident

On May 30, 2025, MainStreet Bancshares, Inc. reported a data security incident involving an outside vendor that was compromised in March 2025. The company determined that the breach affected personally identifiable information of about 4.65% of its customers but did not impact its own IT systems or financial operations. The incident has not had a material impact on the company’s operations or financial condition, and appropriate measures have been taken to notify affected customers and regulators.